In the same category
First Nickel Reports Financial and Operating Results for the Period Ended June 30, 2011
Published : August 11, 2011
( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment
Keywords :   Canadian Dollar | Copper | Debt | Dollar | Market | Nickel | Storage |

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) - First Nickel Inc. ("First Nickel" or the "Company") (News - Market indicators) announces that it has filed with the Canadian securities regulatory authorities its condensed unaudited financial statements, and management's discussion and analysis for the six month period ended June 30, 2011.

Complete results will also be available on SEDAR and on the Company's website at www.firstnickel.com. All dollar amounts are expressed in Canadian currency unless otherwise stated.

Highlights / Summary
  • A $30 million senior debt facility closed on June 29, 2011
  • The Company subsequently completed the metals and foreign exchange hedge contracts required under the credit agreement
  • A private placement of $5 million, also required under the credit agreement, was completed on July 19, 2011
  • The Company is fully funded to complete the re-start and ramp-up to full production, which will double the pre-2008 production level in 2012
  • Development work commenced at the Lockerby Mine in May 2011
  • A private placement of $2 million of flow-through funds was completed in May 2011

Results of Operations

The following table presents a summary of the results of operations for the three and six month periods ended June 30th:

(Unaudited)   For the three months      For the six months 
    ended June 30,      ended June 30, 
    2011    2010      2011    2010 
   
Expenses                          
Care and maintenance costs $ -   $ 1,218,702     $ -   $ 2,562,602  
General and administrative excluding share-based payments  
 
 
672,617
 
 
 
 
 
570,066
 
 
 
 
 
 
 
1,291,275
 
 
 
 
 
1,104,386
 
 
Share-based payments   57,717     1,500       115,434     3,000  
Depreciation and amortization   3,060     4,260       6,120     8,520  
Foreign exchange (gain) loss   (42,845 )   387,081       (249,330 )   111,689  
Financing costs on convertible loan   235,520     235,520       471,040     471,040  
Change in fair value of equity conversion option   (1,169,184 )   (2,665,139 )     827,007     (1,444,783 )
Accretion on convertible loan   141,458     135,706       279,251     262,506  
Accretion of asset retirement obligations   41,652     49,800       83,066     99,600  
Financing costs on bridge loan   -     -       16,226     -  
Interest and other expenses   283     -       2,288     -  
Financial income - net   (52,824 )   (535 )     (156,714 )   (2,847 )
    (112,546 )   (63,039 )     2,685,663     3,175,713  
   
Net earnings (loss) and comprehensive earnings
(loss) for the period
 
$
 
112,546
 
 
 
$
 
63,039
 
 
 
 
 
$
 
(2,685,663
 
)
 
$
 
(3,175,713
 
)
   
Earnings (loss) per share - basic and diluted $ 0.00   $ 0.00     $ (0.01 ) $ (0.02 )
   
   
Weighted average number of common shares outstanding - basic  
 
 
463,825,098
 
 
 
 
 
162,768,568
 
 
 
 
 
 
 
459,145,933
 
 
 
 
 
161,527,931
 
 

As a result of a change in fair value on the equity conversion option of the convertible loan, the Company recorded a gain of $1,169,184 in the second quarter, which resulted in the Company showing net earnings of $112,546, or $ Nil per share, in the three months ended June 30, 2011. On a year-to-date basis, the change in fair value on the equity conversion option is a loss of $827,007, which brings the loss for the six months ended June 30, 2011 to $2,685,663, or $0.01 per share. Under IFRS, the equity component of the convertible loan will be fair valued at each reporting period, and any change in the fair value will be recorded in income or loss in the reported period. The Company has recorded a full valuation allowance against any future income tax assets.

General and administrative expenses, excluding stock-based compensation, totaled $1,291,275 in the first half of 2011, compared to $1,104,386 recorded in the same period of 2010. The increase is mostly attributable to including the wages and related costs of the Chief Operating Officer with the corporate costs. In the prior year, these costs were included with the care and maintenance costs at the Lockerby Mine.

Share-based payments costs in the first six months of 2011 amounted to $115,434 (2010 - $3,000). This cost relates to the vested value of the stock options that were granted to directors, officers and employees in December 2010. The fair value of the options granted was estimated at the grant date to be $468,155. Of this amount, $167,596 was expensed in 2010, with the balance amortized over the vesting period of the options. The Company uses the Black-Scholes pricing model in the valuations of the options.

An increase in the value of the Canadian dollar relative to the U.S. dollar during the first half of 2011 resulted in a foreign exchange gain of $249,330 being recorded. Exchange gains or losses arise from the revaluation of the US dollar cash balances, and the US dollar Convertible Loan account.

The interest on the loan facilities with Resource Capital Fund IV ("RCF IV") for the first half of 2011 amounted to $487,266 ($471,040 on the Convertible Loan and $16,226 on the Bridge Loan). RCF IV notified the Company of its option to receive Common Shares in payment of this interest. A total of 3,116,797 Common Shares were issued to RCF IV in full satisfaction of this liability. The Bridge Loan was fully exchanged into Common Shares in January of 2011, and therefore will not incur any interest going forward.

Financial income is mostly made up of interest earned on cash balances, and on short term deposits. The higher interest income in 2011, compared to 2010, mostly reflects the higher cash balance as a result of the equity financing completed in 2010.

2011 Outlook for Lockerby Mine

The Company successfully completed key re-commissioning tasks and has moved ahead with launching the mine capital development program. Project activities are on track and on budget for commencement of production late in the third quarter of 2011 and then a ramp-up to full annualized production of 10 million pounds of nickel and 7 million pounds of copper per year by mid-2012.

The most critical component of the re-commissioning phase, the installation of the ore/waste handling system on 51L, was completed on time and on budget.

The Capital program designed to develop and mine the Depth zone was fully underway in the second quarter.

The mine contractor charged with carrying out the development work mobilized in May 2011 and at the end of the period activities centered on advancing the ramp toward 65-2 level, opening up 65-3 level in anticipation of production, excavating remuck (storage) areas and increasing the excavation for the future maintenance shop on 60 level.

Part of the capital plan is to replace major elements in the underground mobile equipment fleet. Delivery of the first 42T truck took place in March 2011, and the balance of the equipment, including three additional trucks, three 6 yard LHDs and a drill jumbo are scheduled to be on site and in service in the next few months.

Needed improvements to the mine backfill delivery system to satisfy the new mine plan were started. One of two boreholes to deliver backfill slurry to the 53 level was completed, the second is underway, and changes to improve the piping and control systems in the backfill plant were also launched.

As the pace of the capital program has increased, a number of unionized employees have been recalled to provide mine support and maintenance services. Recruiting is also underway for supervisory and additional technical personnel.

Qualified Person

The foregoing scientific and technical information has been prepared or reviewed by Paul C. Davis, P.Geo., Vice-President Exploration of the Company. Mr. Davis is a "qualified person" within the meaning of National Instrument 43-101.

The Company follows rigorous quality control practices and procedures in full compliance of NI 43-101, and these are described on the Company's website and in all technical press releases.

First Nickel is a Canadian mining and exploration Company, whose principal asset is the Lockerby Mine near Sudbury, Ontario. In addition to its Lockerby operation, the Company maintains an active exploration program on projects near the mine around Sudbury, and elsewhere in Ontario. First Nickel's shares are traded on the TSX under the symbol FNI.

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions, including the cash flows, metal prices, decrease costs, increase output, expected production, and expected exploration expenditures. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such factors include fluctuating metal prices, lower unit costs and other factors described in the Company's most recent Annual Information Form under the heading "Risk Factors" which has been filed electronically by means of the System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com. Such forward-looking statements are made as at the date of this news release, and the company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.



First Nickel Inc.
William Anderson
President & CEO
(416) 362-7050
(416) 362-9050 (FAX)
wanderson@firstnickel.com
www.firstnickel.com

First Nickel Inc.

DEVELOPMENT STAGE
CODE : FNI.TO
ISIN : CA33582W1068
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

First Nickel is a nickel exploration company based in Canada.

First Nickel develops nickel, cobalt, copper, gold, palladium, platinum and silver in Canada, and holds various exploration projects in Canada.

Its main assets in development are LOCKERBY MINE and PREMIERE RIDGE in Canada and its main exploration properties are RAGLAN HILLS, LANDORE/ WEST GRAHAM, MORGAN-LUMSDEN, BELMONT PROJECT, WEST GRAHAM, FOY MOUTH, KAMISKOTIA and DUNDONALD in Canada.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Financings of First Nickel Inc.
3/12/2015Completes Debt Refinancing
3/11/2015FNI Announces Approval by Shareholders of Debt Refinancing a...
4/8/2013Completes Refinancing
9/12/2011Hires New President & CEO and Announces $500,000 Private Pla...
3/2/2011Secures Commitments for C$30 Million Senior Secured Project ...
Nominations of First Nickel Inc.
10/3/2013Names Alfred Colas as Chief Financial Officer
2/4/2013Announces Changes to the Board of Directors With the Appoint...
7/3/2012Appoints David Comba as New Chairman
4/29/2008Gerry Bilodeau Appointed as Vice President Operations
Financials of First Nickel Inc.
3/26/2015Reports Financial and Operating Results for the Year Ended D...
8/12/2013Reports Three and Six Months Financial and Operating Results...
5/15/2013Reports First Quarter 2013 Financial and Operating Results
11/13/2012Reports Third Quarter 2012 Financial and Operating Results
8/14/2012Reports Second Quarter 2012 Financial and Operating Results
5/16/2012Reports First Quarter 2012 Financial and Operating Results
8/11/2011Reports Financial and Operating Results for the Period Ended...
5/30/2011Reports Financial and Operating Results for the Period Ended...
3/30/2011Reports Financial and Operating Results for the Year Ended D...
11/11/2008Reports Financial And Operating Results For The Three And Ni...
5/14/2008Reports Financial and Operating Results for the Three Month ...
3/27/2008 Reports Financial And Operating Results For The Year Ended ...
11/14/2007 Reports Third Quarter 2007 Results
Project news of First Nickel Inc.
5/6/2014First Nickel says two workers dead at Sudbury mine
1/3/2013Reports Lockerby 2012 Nickel Production is Expected to Be Ap...
8/3/2012(Lockerby Mine)Files Optimized Lockerby Mine Plan with SEDAR
6/18/2012(Lockerby Mine)Optimizes Lockerby Mine Plan, Resulting in an $87 Million NP...
11/7/2008(West Graham)Provides an Exploration Update on Lockerby and West Graham P...
7/3/2008(Lockerby Mine)Announces the Results of the NI 43-101 Reserve Estimate and ...
6/30/2008(Premiere Ridge)Announcement Re Premiere Ridge
3/25/2008(West Graham) Intersects 86.70 Metres of 0.55% Ni and 0.43% Cu on West Gr...
1/16/2008(Lockerby Mine) Reports 289% Increase in Indicated Resources at the Lockerb...
12/11/2007(Raglan Hills)Sign Joint Venture on Raglan Hills Project
11/1/2007(Lockerby Mine)Nickel Production Increasing Additional Promising Lockerby D...
7/23/2007(Lockerby Mine)Intersects 53.30 Metres of 1.82% Ni and 1.39% Cu at Lockerby...
Corporate news of First Nickel Inc.
8/27/2015TSX Delisting Review - First Nickel Inc. (Symbol: FNI)
8/20/2015First Nickel Announces Appointment of Receiver
8/20/2015TSX Delisting Review - First Nickel Inc. (Symbol: FNI)
8/20/2015First Nickel Announces Application for Appointment of Receiv...
8/20/2015IIROC Trading Halt - FNI
8/20/2015First Nickel Reports Financial and Operating Results for the...
8/14/2015First Nickel Reports Financial and Operating Results for the...
8/4/2015First Nickel Reports Incident at Lockerby Mine
8/3/2015First Nickel Reports Incident at Lockerby Mine
7/20/2015First Nickel Announces Change to Board of Directors
7/17/2015First Nickel Announces Change to Board of Directors
6/22/2015Results of the FNI Annual General Meeting of Shareholders
3/26/2015FNI Reports Financial and Operating Results for the Year End...
3/26/2015First Nickel Reports Financial and Operating Results for the...
3/12/2015FNI Completes Debt Refinancing
3/11/2015FNI Announces Approval by Shareholders of Debt Refinancing a...
3/2/2015Leading Independent Advisory Firms ISS and Glass Lewis Recom...
3/2/2015Leading Independent Advisory Firms ISS and Glass Lewis Recom...
2/9/2015IIROC Trade Resumption - FNI
2/9/2015First Nickel Announces Debt Refinancing
2/9/2015IIROC Trading Halt - FNI
1/27/2015First Nickel Provides Preliminary 2014 Production Results an...
1/12/2015First Nickel Restructures the Lockerby Mine, Reducing Costs ...
1/12/2015First Nickel Restructures the Lockerby Mine, Reducing Costs ...
11/11/2014FNI Reports FInancial and Operating Results for the Three an...
11/10/2014First Nickel Reports Financial and Operating Results for the...
8/11/2014First Nickel Reports Financial and Operating Results for the...
6/11/2014Results of the FNI Annual General Meeting of Shareholders
5/12/2014First Nickel Reports Financial and Operating Results for the...
5/8/2014First Nickel Reports the Lockerby Mine Will Resume Operation...
5/6/2014First Nickel Provides Update on Lockerby Accident
5/6/2014First Nickel Reports Two Fatalities at the Lockerby Mine
5/6/2014IIROC Trade Resumption - FNI
5/6/2014First Nickel Reports Incident at the Lockerby Mine
5/6/2014IIROC Trading Halt - FNI
3/21/2014FNI Reports Financial and Operating Results for the Year End...
3/21/2014First Nickel Reports Financial and Operating Results for the...
3/19/2014FNI Positioned to Benefit from Higher Nickel Prices
9/27/2013FNI Amends Lockerby Ore Processing Agreement
7/10/2013Reports 4 Year Contract Ratified with Mine Mill 598/CAW
6/12/2013Results of the FNI Annual General Meeting of Shareholders
4/18/2013(Lockerby Mine)FNI Achieves Full Production at Lockerby Mine
4/1/2013Announces Restructuring of Indebtedness
1/16/2013FNI Arranges US$5.0 Million Loan Facility
10/19/2012Reports Lockerby Nickel Production at 80% of Full Production...
4/24/2012Provides Comment on Ministry of Labour Order
3/23/2012Announces Increase to 2012 Exploration Program
1/25/2012Announces Continued Progress at Lockerby in Q4-2011 and Prov...
12/14/2011Announces Organizational Changes
12/5/2011Hires New Head of Corporate Development
7/20/2011Completes $5 Million Private Placement
7/5/2011Enters Into C$30 Million Project Loan Facility
5/18/2011Announces $2 Million Flow-Through Private Placement
4/25/2011Provides Update on Lockerby Restart
5/6/2008Establishes Shareholder Rights Plan
4/30/2008Market Update Announcement
2/12/2008Provides 2008 Guidance
9/6/20072007 Update
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
TORONTO (FNI.TO)
0.005+0.00%
TORONTO
CA$ 0.005
09/25 15:47 -
0%
Prev close Open
0.005 0.005
Low High
0.005 0.005
Year l/h YTD var.
 -  -
52 week l/h 52 week var.
- -  0.005 -50.00%
Volume 1 month var.
90,000 -50.00%
24hGold TrendPower© : -2
Produces
Develops Cobalt - Copper - Gold - Nickel - Palladium - Platinum - Silver
Explores for Cobalt - Copper - Gold - Lead - Nickel - Platinum - Silver - Uranium - Zinc
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
Last updated on : 12/4/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 7.05-0.84%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 2.20+0.00%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 3.86+0.00%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 7.04-1.81%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.70-2.91%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.08-21.05%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 1.97+4.79%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 9.41+2.84%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.18-5.41%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.32+3.23%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.30+0.88%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 62.20+1.58%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.03+12.00%Trend Power :